Qatar Re acquires UK motor insurer Markerstudy
Bermuda-based Qatar Reinsurance Company (Qatar Re) has signed a sales purchase agreement to buy Markerstudy’s Gibraltar-based insurance companies.
Markerstudy underwrites more than 5 percent of the UK motor insurance market, generating premiums of about £750 million.
The deal includes Markerstudy Insurance Company, Zenith Insurance, St Julians Insurance Company and Ultimate Insurance Company.
The QIC Group has an existing substantial relationship with Markerstudy through Qatar Re and QIC Europe (QEL).
"This transaction builds on the strong foundation of our existing relationship," said Gunther Saacke, Qatar Re’s CEO. "It provides Qatar Re with a greater share of lower volatility business that has performed consistently well for us, balancing our specialty and catastrophe book. In addition, the transaction will enable us to write UK business under any post-Brexit scenario.
"Through this acquisition, Qatar Re reaffirms its commitment to supporting innovative entrepreneurship in insurance marketing, distribution and servicing."
Kevin Spencer, CEO of Markerstudy Group, said: "For a long time we have had a tremendous relationship with Qatar Re. Their proactive approach has assisted our development and this is a natural evolution; to combine our strengths to establish a primary player in the UK insurance sector.
"This strategic alliance has three-fold benefits; it enables us to simplify our product offering and processes for our intermediaries and broker partners; it provides us with A rated capital backing, and ensures we maintain the continuity of marketing, distribution, service and support. Ultimately, this arrangement will facilitate our strategy for growth and profitability, positioning us for further success."
The transaction is subject to regulatory approvals and is anticipated to complete in the first half of 2018.
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